Prajna Capital |
- Where to Invest for Short Term - Ultra Short Term Debt Funds
- UTI Dividend Yield Fund
- Home Loan Tax benefit under Section 80C
| Where to Invest for Short Term - Ultra Short Term Debt Funds Posted: 05 Jul 2013 04:51 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Ultra short-term debt funds suit the needs of those looking to invest for less than a year...
With less than a year at hand, you should rule out equity, as your investments in equity funds can depreciate catching a low phase of markets.
You can consider investing in debt funds, but even in a debt fund you will get the proceeds of redemption on the next business day. If liquidity is high on your priority, keep the money in a savings bank account otherwise consider investing in ultra short-term fund.
This category of funds has delivered a return of 8.89 per cent over the past one year. These funds invest in corporate papers like commercial papers, certificate of deposits, bonds etc of maturity up to one year. Although, the returns are market linked and these funds are exposed to credit risk, they do not materialise risk. They are tightly regulated and monitored by SEBI to guard investor's interest. Also, the interest rate risk is low due to investment in paper of smaller duration. These funds generally invest in papers with maturity up to one year. These funds are more tax efficient than bank term deposits as the dividends are taxed at a lower rate of 13.5 per cent including surcharge and cess. Although short-term gains (less than a year) from these funds will be added to the individual's income but long-term gains will be taxed at 10 per cent without indexation and 20 per cent with indexation.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
| Posted: 05 Jul 2013 02:57 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
UTI Dividend Yield Fund (UDYF) is best suited for investors who prefer consistency in returns with a low downside. You may add this fund to your equity portfolio as a diversifier within the asset class. You can create wealth with its conservative investment approach in high dividend yield stocks. It has successfully passed through both the upturn and downturn and has emerged as an impressive performer.
Performance UDYF has performed well across market cycles, during the bull run of 2007 as well as the bear phase of 2008. The impressive performance of 70 per cent in 2007 put it not only ahead of the Nifty, which managed 53 per cent, but also the multi-cap category average of 59.69 per cent. During the market downturn of 2008, when the Nifty fell 52 per cent and the average diversified equity funds around 56 per cent, UDYF fell only 44 per cent.
The fund's performance on 3-year and 5-year bases has been impressive compared to its peers—delivering 4.59 per cent and 10.52 per cent, respectively, against the 2.63 per cent and 5.37 per cent, respectively, by its peers.
Portfolio According to the mandate, UDYF needs to invest at least 65 per cent of its portfolio in equity shares with a high dividend yield and the rest in growth and other instruments.
"We invest in the stocks that have higher dividend yield than the Nifty," says Swati Kulkarni, fund manager, UTI MF. The strategy of being a large-cap-oriented scheme that invests across sectors and market capitalisation has worked in its favour. The February portfolio shows 52 stocks, of which 50 per cent is accounted for by the banking, the petroleum and the software sectors. Kulkarni believes these sectors have the highest dividend yield stocks.
Its performance across market cycles and sound fund management makes UDYF a must-have in your portfolio. You may invest through the SIP route to build your long-term portfolio.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
| Home Loan Tax benefit under Section 80C Posted: 05 Jul 2013 12:38 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) As explained earlier that housing loan EMI consists of Principal and interest. The principal portion of housing loan EMI paid in a financial year is eligible for tax benefit u/s 80C upto a maximum limit of Rs 1 lakh per year. Other Section 80C components for tax saving are PPF, ELSS, Life insurance premiums, NSCs, 5 year bank fixed deposit etc. The total cap of section 80C investment is Rs 1 lakh which is inclusive of this principal payment in housing loan. But here is one condition; you can claim this section 80C benefit on principal home loan payment only in the case of self-occupied house. Only exception is if the house is not in the city you work in. For example: if you live in Delhi due to your job and the house that you are paying EMI for is in Chandigarh, than in that case you are eligible for the section 80C benefit on principal portion of the EMIs. Or you should be staying in that particular house to claim for Section 80C tax benefit. Housing loan tax benefit u/s 24The interest portion of housing loan EMI paid in a financial year can be claimed as deduction u/s 24 up to a maximum limit of Rs 1.50 lakh per year. Interest payment is considered as expense under the head "income from house property". The best part in tax benefit under section 80C and section 24 with respect to housing loan EMI is that there's no limit on "Self occupied houses". Say for example you work in Delhi, but you have one house in Chandigarh and other in Mumbai, for which you are paying housing loan EMIs, You can claim benefit of Section 80C and Section 24 for both of houses under self-occupied category within the maximum limit u/s 80C which is Rs 1 lakh and u/s 24 which is Rs 1.5 lakh, combining the total principal and Interest payment of all the houses. Do note that both benefits can be claimed only after taking possession of house. Some conditions to avail this benefit: Maximum interest allowed in aggregate of Rs 1.50 lakh per year, if the following conditions are satisfied- a) Loan is utilised for construction or acquisition of house on or before 1-4-99. b) Construction or acquisition of house should be complete in maximum of 3 years starting from the end of financial year in which capital is borrowed. One more interesting point here is that section 24 tax benefit can be claimed even if the loan is raised from friends, family or relatives. If you have good inflow of income and then by doing tax planning early in life you can create different tax files in the family and can use them for your own tax benefits. This way you can save on the interest payment to bank, and also be able to claim tax benefit on your own income. Do note that this benefit can only be claim against the certificate issued by the loaner and he has to pay tax on the interest received against this loan Special tax incentive announced for people taking first home loan up to Rs 25 lakh in FY 2013-14 (Section 80EEE). In this scheme additional interest deduction of Rs 1 lakh is offered only for one year. If one could not exhaust the full Rs 1 lakh in 2013-14, then he can carry forward the balance to next year. Please note this is over and above the deduction of Rs 1.5 lakh and of course with many additional conditions. Pre EMI interest Pre EMI interest can be claimed in 5 equal installments starting from the financial year in which possession has been taken. For example you have paid pre EMI interest as under
Starting 2010-11 till 2014-15, you can claim PRE EMI interest deduction of Rs 1,80,000(20%) which comes to Rs 36000/-, along with the interest you pay in those years. But do note that total interest payment benefit should not exceed Rs 1.50 lakh in any financial year.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
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